Bill Text: NJ S4514 | 2026-2027 | Regular Session | Introduced
Bill Title: Concerns certain motor vehicle related funding to certain municipalities.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced) 2026-06-24 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S4514 Detail]
Download: New_Jersey-2026-S4514-Introduced.html
Sponsored by:
Senator RAJ MUKHERJI
District 32 (Hudson)
Senator ANGELA V. MCKNIGHT
District 31 (Hudson)
SYNOPSIS
Concerns certain motor vehicle related funding to certain municipalities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain motor vehicle related funding to certain municipalities and amending various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.2019, c.289 (C.40:48C-1.7) is amended to read as follows:
1. a. Any municipality with a population of 100,000 or greater according to the most recent American Community Survey five-year estimate by the United States Census Bureau may adopt an ordinance imposing a mass transit access parking tax of three and one-half percent on fees for the parking, garaging, or storing of motor vehicles at public parking garages, lots, or facilities only. No such parking tax shall be imposed on the parking, garaging, or storing of motor vehicles at a parking lot, garage, or facility that is part of a private single or multi-family dwelling, or a condominium building, a cooperative building, or an apartment building.
b. [All] (1) Except in a municipality with a population of 200,000 or greater that experienced a population increase of more than 15 percent between the 2010 and 2020 federal decennial censuses, the parking taxes collected pursuant to this section shall be anticipated and appropriated in the municipal budget as dedicated revenue pursuant to N.J.S.40A:4-39 for the exclusive purpose of funding or financing capital improvements for pedestrian access to mass transit stations, including, but not limited to, the construction of bridges, tunnels, platforms, walkways, elevators, escalators, and stairways directly related to mass transit pedestrian accessibility; provided, however, that any parking tax revenues remaining after all the budgeted mass transit pedestrian access capital improvement expenditures have been used in a fiscal year may be used to fund quality of life projects within the municipality.
(2) In a municipality with a population of 200,000 or greater that experienced a population increase of more than 15 percent between the 2010 and 2020 federal decennial censuses, the parking taxes collected pursuant to this section shall be appropriated for either the purposes authorized pursuant to paragraph (1) of this subsection, or operating and administrative expenses related to the facilitation of mass transit.
c. The parking tax authorized by this section may be collected in addition to a surcharge collected pursuant to section 3 of P.L.2013, c.284 (C.40:48C-1.6) or a tax collected pursuant to subsection a. of section 6 of P.L.1970, c.326 (C.40:48C-6), but the parking tax authorized by this section shall not be collected whenever a special event parking tax surcharge is collected pursuant to subsection b. of section 6 of P.L.1970, c.326 (C.40:48C-6).
d. An ordinance adopted pursuant to subsection a. of this section shall exempt residents of the municipality from the full amount of the three and one-half percent parking tax. The exemption shall be implemented as follows:
(1) For short-term parking, a resident may apply to the municipality for a rebate of the total three and one-half percent parking tax charged as provided in the ordinance; and
(2) For long-term parking, a parking facility operator shall not charge a resident the three and one-half percent parking tax upon a display of proof of residence as provided in the ordinance.
(cf: P.L.2021, c.348, s.1)
2. Section 8 of P.L.1985, c.14 (C.39:4-139.9) is amended to read as follows:
8. a. Out of each parking penalty assessed and disbursed to the municipality where a failure to appear notice was issued under these provisions, $2.00 shall be designated and distributed to the municipal court by the municipality to provide for the court's operating costs to administer this act. In a municipality with a population of 200,000 or greater that experienced a population increase of more than 15 percent between the 2010 and 2020 federal decennial censuses, of each parking penalty assessed and disbursed to the municipality where a failure to appear notice was issued under these provisions, 10 percent shall be designated and distributed to the municipal court by the municipality to provide for the court's operating costs to administer P.L.1985, c.14 (C.39:4-139.2 et seq.) and shall be allocated at the municipality's sole discretion. These funds shall be in addition to the municipal court's normal budget allocation but in no event shall exceed those additional costs to the court incurred as a result of [this act] P.L.1985, c.14 (C.39:4-139.2 et seq.).
b. If a respondent defaults in the payment of a fine, penalty or costs, or of an installment, the court may require the respondent to show cause why the default should not be treated as a civil contempt and may issue a summons or order to show cause or a bench warrant of arrest for the respondent's appearance. The officers of a corporation or the partners, directors or officers of an association may be held in contempt upon a default by the corporation or association.
(cf: P.L.1989, c.137, s.1)
3. Section 20 of P.L.2009, c.90 (C.40:48H-2) is amended to read as follows:
20. a. A municipality having a population in excess of 100,000 and within which is located a commercial airport which provides for a minimum of 10 regularly scheduled commercial airplane flights per day, or a municipality in which any portion of such an airport is located, by ordinance, may impose a tax on the rental of motor vehicles on such rental transactions that occur within a designated industrial zone of the municipality. [Such tax] A municipality with a population of 200,000 or greater that experienced a population increase of more than 15 percent between the 2010 and 2020 federal decennial censuses, by ordinance, may impose a tax on the rental of motor vehicles on such rental transactions that occur within the municipality, regardless of the zoning designation of the location of a transaction. A tax imposed pursuant to this subsection shall be imposed on the person, corporation, or other legal entity that is permitted the use of a motor vehicle that it does not own for a period of time that is less than one year, in exchange for the payment of a fee, and shall be collected on behalf of the municipality by the person collecting such rental fee, in accordance with such procedures as shall be established in the ordinance imposing the tax.
The local motor vehicle rental tax rate imposed under an ordinance adopted pursuant to this section shall not exceed five percent of the total amount of the fee charged for the rental of the motor vehicle, excluding any taxes and surcharges. After the adoption of an ordinance, a municipality may subsequently amend the ordinance from time to time to adjust the boundaries of the industrial zone or, subject to the provisions of section 26 of P.L.2009, c.90 (C.40:48H-8), to modify the tax rate; however, the modified rate shall not exceed five percent of the total amount of the fee charged for the rental of the motor vehicle, excluding any taxes and surcharges.
An ordinance establishing a local motor vehicle rental tax, or modifying the rate of that tax, shall take effect on the first day of the month immediately following the date on which the ordinance becomes legally in force and effect.
b. As used in this section:
"Eligible purposes" means (1) the payment or reimbursement of costs of any "redevelopment project" or other undertaking in furtherance of a "redevelopment plan" in any "area in need of redevelopment" or "area in need of rehabilitation" within the municipality (including, but not limited to, redevelopment projects and undertakings located within the industrial zone), as such terms are defined in the "Local Redevelopment and Housing Law", P.L.1992, c.79 (C.40A:12A-1 et al.), (2) the making of municipal subsidies or contributions as authorized by P.L.1992, c.79, (3) the payment or reimbursement, within or relating to any urban enterprise zone located within the municipality, of such costs as are enumerated in the definition of "project" as contained in subsection c. of section 29 of P.L.1983, c.303 (C.52:27H-88), without reference to the zone assistance fund or the zone development corporation, (4) the payment of bonds issued for any of the foregoing purposes, (5) planning, evaluation, negotiation, and other preliminary expenses relating to any of the foregoing purposes, and (6) costs of administration and enforcement, including costs and expenses of the municipality incurred in collecting the tax.
"Industrial zone" means such portion or portions of the municipality, which may be identified by reference to zoning districts, census tracks, or both, not exceeding in the aggregate 50 percent of the territory of the municipality, as is determined by the municipality to be an area having, or intended to have, predominantly industrial, port, airport, and related uses.
"Motor vehicle" means any automobile, truck, van, bus, or similar conveyance that is intended primarily for passenger (as distinct from cargo) use, and meeting the requirements of the State for operation on public roads.
"Rental of motor vehicle" means any contract or agreement by which a person, corporation, or other legal entity is permitted the use of a motor vehicle that it does not own for a period of time that is less than one year in exchange for the payment of a fee. A rental transaction is deemed to occur at the location at which such person, corporation, or other legal entity takes possession of the motor vehicle.
"Rental tax account" means the dedicated trust account established by a municipality pursuant to subsection c. of this section.
"Tax proceeds" means amounts collected pursuant to any tax imposed pursuant to sections 19 through 27 of P.L.2009, c.90 (C.40:48H-1 et seq.).
c. The Director of the Division of Taxation in the Department of the Treasury may require, by regulation, that all taxes collected pursuant to sections 19 through 27 of P.L.2009, c.90 (C.40:48H-1 et seq.) be collected in the same manner as surcharges are collected under section 28 of P.L.2009, c.90 (C.40:48G-2). Except as provided hereinafter, revenues that are collected and distributed back to the municipality shall be deposited into a trust account established by the municipality and dedicated exclusively to the purpose of funding one or more eligible purposes. Revenues that are collected during tax years 2015 through 2017 for distribution back to a municipality having a population in excess of 270,000, according to the 2010 federal decennial census, may be deposited into the current fund of that municipality and may, to the extent not already allocated for eligible purposes, be used to reduce the appropriation for "cash deficit of preceding year" pursuant to N.J.S.40A:4-42, or to address its operational deficit identified at the beginning of the local budget year or through the annual financial statement. In tax year 2018 and thereafter, up to 50 percent of the revenues annually collected may be deposited into the current fund and used to reduce the appropriation for "cash deficit for preceding year" or to address its operational deficit, and the remainder shall be deposited into the municipality's trust account for eligible purposes. In the case of any assignment pursuant to section 23 of P.L.2009, c.90 (C.40:48H-5), the terms of such assignment shall include the agreement of the municipality to enforce collection of the taxes in such manner as provided therein, and may provide for direct payment of all or a portion of the tax proceeds to a bond trustee. In addition to tax proceeds, there shall be deposited into the rental tax account such other moneys as may, from time to time, be directed by law to be deposited therein.
(cf: P.L.2015, c.171, s.1)
4. This act shall take effect immediately.
STATEMENT
This bill modifies the municipal distribution requirements and rates for certain motor vehicle related funding.
The bill amends the mass transit access parking tax imposed pursuant to section 1 of P.L.2019, c.289 (C.40:48C-1.7). In addition to the existing authorities permitted for the use of revenues from this tax, this bill permits a municipality with a population of 200,000 or greater that experienced a population increase of more than 15 percent between the 2010 and 2020 decennial censuses to impose this tax, and use these revenues for operating and administrative expenses related to the facilitation of mass transit.
The bill also amends "The Parking Offenses Adjudication Act," P.L.1985, c.14 (C.39:4-139.2 et seq.). Currently, $2 of each parking penalty assessed, when a failure to appear notice has been issued, is distributed to the municipal court. This bill changes this $2 amount for a qualifying municipality to an allocation of 10 percent of each penalty. The bill also provides the municipality with sole discretion in determining how to allocate the funds if the municipality has a population of 200,000 or greater and experienced a population increase of more than 15 percent between the 2010 and 2020 decennial censuses.
The bill also amends section 20 of P.L.2009, c.90 (C.40:48H-2) to permit a municipality with a population of 200,000 or greater that experienced a population increase of more than 15 percent between the 2010 and 2020 decennial censuses to collect a rental car tax regardless of the presence of a major airport. Currently this tax may only be imposed in a municipality with a population of over 100,000 where a major airport is located. The bill also removes a restriction providing that the tax may only be imposed on transactions that occur within a designated industrial zone of the municipality if the municipality has a population of 200,000 or greater and experienced a population increase of more than 15 percent between the 2010 and 2020 decennial censuses.
This bill is to take effect immediately.
